The Folio Insurance management team has over 20 years experience in offshore insurance products and alternative risk financing. We have established in excess of 100 captive insurance companies providing insurance products to industries as diverse as the construction industry to medical practitioners to financial services providers.
Folio Insurance is a licensed insurance manager in Anguilla providing consulting and management services to the international alternative risk financing industry.
We specialize in the formation and management of captive insurance companies for small and medium size companies, primarily from the United States and the provision of international life and annuity products.
Folio Insurance prides itself on delivering the personal attention that clients expect as well as providing pragmatic advice in plain English.
With experience of international insurance regulation as well as corporate and tax law both domestically and in the US, Folio Insurance has the blend of professional experience needed when you consider alternative risk financing strategies.
Captive Insurance Companies
In its strictest definition, a captive insurance company is an insurance company formed to insure or reinsure the risks of its parent company.
Typically, captives are established to fill the gaps where the conventional insurance market either cannot provide coverage or where the cost is considered to be economically prohibitive.
Benefits of a captive include:
• Reduction in the total cost of risk faced by a corporation
• Underwriting stability
• Enhanced cashflow
• Participation in underwriting profits
• Access to the reinsurance market
• Providing a focus to a corporations risk management policy
• Potential tax savings
In addition, a captive insurance company can assist family run businesses by providing asset protection and estate planning options.
Who can benefit from a captive insurance company?
Typically Folio Insurance works with family run businesses to provide specialist captive solutions that incorporate estate planning, asset protection and tax benefits. In particular, Folio has expertise in structuring captive vehicles that work within the terms of IRC§831(b) and are recognized as small insurance companies with premiums of up to $1,200,000. The benefit of this is that the insurance company will be taxed only on investment income.
In order for a company to be designated IRC§831(b) it must elect to be a US taxpayer by making a 953(d) election. This allows the company to maintain assets in the US rather than having to maintain bank accounts offshore and not fall foul of reporting requirements under the PATRIOT Act. Essentially, the insurer operates and is regulated from Anguilla but control can remain within the US.
With taxation only being made on investment income companies can build up substantial surpluses in the company quickly which can then be used to support expansion of underwriting areas that can further assist in the risk management policy of the parent corporation.
International Life Insurance Products
Life insurance is frequently used by affluent individuals and families as part of estate and wealth planning. International life insurance policies such as annuities and variable universal life can provide enhanced benefits over US domestic issued policies such as:
• Tax deferral
• Wealth preservation and asset protection
• Access to alternative investments not available directly to us citizens and residents providing higher rates of return
• Improved internal build up of asset value
• No state taxes are payable on premiums
• Lower premiums and internal costs improving returns to policyholders
• Increased confidentiality
Working with key service partners Folio Insurance is able to provide international life insurance solutions to meet your individual needs. Products include:
• Variable International Life
• Variable International Annuities
• Variable Single Premium Immediate Annuities
• Improved internal build up of asset value
• No state taxes are payable on premiums
• Lower premiums and internal costs improving returns to policyholders
• Increased confidentiality
If you are an individual or a family, and are considering the sale of a business, Folio Insurance can provide bespoke solutions using international life insurance products that can minimize capital gains tax.
DISCLOSURE UNDER IRS CIRCULAR 230: THIS COMMUNICATION IS NOT INTENDED TO AND DOES NOT COMPLY WITH THE U.S. TREASURY DEPARTMENT'S TECHNICAL REQUIREMENTS FOR A FORMAL LEGAL OPINION. CONSEQUENTLY, IT CANNOT BE USED BY A TAXPAYER TO AVOID ANY PENALTY THAT MIGHT BE IMPOSED ON A TAXPAYER. NOTHING IN THIS COMMUNICATION MAY BE USED OR REFERRED TO IN PROMOTING, MARKETING, OR RECOMMENDING A PARTNERSHIP OR OTHER ENTITY, INVESTMENT PLAN OR ARRANGEMENT TO ANY PERSON.